How a void transaction works
An approved authorisation places a hold on the cardholder's available balance. If the sale falls through before capture, because the customer changes their mind, an item is out of stock or the order was keyed twice, the merchant voids the payment at the terminal, in the dashboard or through the API.
The gateway drops the payment from the batch waiting for settlement and sends an authorisation reversal through the acquirer to the issuer, which releases the hold. How fast the cardholder sees the funds again depends on the issuer.
When a void is possible
Only between authorisation and settlement. With automatic capture that window can be short, often until the day's batch closes, and once the payment has settled the only way back is a refund. The Visa Core Rules of 18 April 2026 (5.7.3.6) and Mastercard's Transaction Processing Rules of 9 June 2026 (2.11.1) both have the reversal sent within 24 hours of a cancelled sale.
Why voids matter
A void spares the merchant a refund, because the payment never clears, and the customer is not left waiting days for money to come back. A payment system picks the right action by itself: a void while the payment is unsettled, a refund afterwards, and for a partly shipped order a capture of the smaller amount with the rest reversed.
Void, refund or reversal?
- Refund
- Returns money after settlement, as a new transaction that is cleared and shown on the statement.
- Authorisation reversal
- The message a void sends to the issuer. The void is the merchant's action, and the reversal is how the network carries it.
- Expired authorisation
- A hold that the merchant neither captures nor voids lapses by itself, but only after the issuer's own time limit.
Where a void shows up in a platform
Modules that do the work
- Card acquiringCard acceptance on the phone, in store and online, through the acquirer you choose.
- CheckoutA hosted checkout for cards, wallets, bank payments and crypto, routed to the best provider.
- LedgerThe double-entry book of record behind every balance, fee and transfer.
Platforms that need it
Where it is written
The laws and standards this page's facts come from.
- Visa Core Rules and Visa Product and Service Rules, 18 April 2026: 5.7.3.6 (Visa)
- Mastercard Transaction Processing Rules, 9 June 2026: 2.11.1 (Mastercard)
General information, not legal advice: what applies to you depends on your services and your market.